grace period

noun

: a period of time beyond a due date during which a financial obligation may be met without penalty or cancellation

Examples of grace period in a Sentence

The terms of the loan allow for a ten-day grace period.

Recent Examples on the Web

Companies with Nasdaq listing applications pending as of March 12, 2025, had a 30-day grace period to price their offerings under the old standards. —Joseph Lucosky, Forbes.com, 25 Apr. 2025

The move by President Donald Trump's administration follows the expiration of payment pauses and grace periods that began in 2020 under the Biden administration and lasted through late 2024. —Josh Hammer, MSNBC Newsweek, 22 Apr. 2025

The previous generation lasted for 10.5 days, including the same 12-hour grace period. —Annika Kim Constantino,ashley Capoot,bertha Coombs, CNBC, 16 Apr. 2025

The state law, Assembly Bill 413, was passed in 2023 and took effect Jan. 1 this year, though motorists initially were given a 60-day grace period to adapt. —Noah Lyons, San Diego Union-Tribune, 9 Mar. 2025

Word History

First Known Use

1907, in the meaning defined above

Rhymes for grace period

• myriad
• photoperiod

Legal Definition

grace period

noun

grace pe·​ri·​od

: a period of time beyond a scheduled date during which a required action (as payment of an obligation) may be taken without incurring the ordinarily resulting adverse consequences (as penalty or cancellation): as

a

: a period of 30 days or one month during which premiums on insurance policies may be paid without penalty

b

: a period of ten days during which certain security interests (as those in fixtures) must be perfected in order to have priority over conflicting security interests under Article 9 of the Uniform Commercial Code

called also days of grace